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creator staking docs updates #128

Merged
merged 18 commits into from
Oct 26, 2023
Merged
21 changes: 14 additions & 7 deletions docs/basics/staking/Overview.md
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Expand Up @@ -11,7 +11,8 @@ Heavy inspiration was taken from the Dapp Staking system implemented on Astar Ne
aimed at incentivizing developers to build applications on the network.
Creator Staking expands this idea to include creators of content and communities, as those are also very valuable to Subsocial.

Token holders can stake [here](https://sub.id/creators). The minimum amount of tokens required to stake is 100 SUB.
Token holders can stake [here](https://sub.id/creators).
The minimum amount that users can stake is 100 SUB, and they will need to have at least 10 SUB left over after staking.

Holders of SUB tokens can to stake towards their favorite content, community, or application creators, in order to receive more tokens.
Stakers will receive the same rewards regardless of who they stake to, effectively making this a vote,
Expand All @@ -22,19 +23,25 @@ Note that at launch, there will be a pre-selected list of 10 creators to stake t
fill out this [form](https://forms.gle/aneosvJP1ntJ9Zrh6). In the future, creator registration will likely become permissionless,
or take place through on-chain governance, though we are waiting to see how the system performs.

### Rewards

Of the tokens allocated to Creator Staking rewards, 66.7% will be distributed among stakers, and 33.3% will be distributed among creators.
Creators will receive tokens based on how many SUB are staked towards them, compared to other creators.
Of the tokens allocated to Creator Staking rewards, 50% will be distributed among stakers, and 50% will be distributed among creators.
As usual, the more tokens a user stakes, the more they can expect to receive in return,
and a creator with one million SUB staked towards them will receive more rewards than a creator with only one thousand SUB staked towards them.

At launch, there will be 1,000,000 SUB allocated per month towards Creator Staking (500,000 split among creators and 500,000 split among stakers),
which would represent 1.2% annual inflation to the token supply. However, as we test the system in the first few months,
these tokens will be taken from the Subsocial treasury, instead of minting them.
![](../../../static/img/staking.png)

Subsocial currently has 1.58% inflation. At launch, 90% of this inflation will be allocated towards Creator Staking (the remaining 10% will go to the treasury).
This means that Creator Staking rewards will start at 1,185,000 SUB per month (395,000 split among creators and 790,000 split among stakers).
The inflation rate and percentage of inflation that is allocated towards Creator Staking is subject to change.

Staked tokens will be subject to a unbonding period in order to unstake them, after which another transaction will need to be done to unlock them.
Staked tokens will be subject to a roughly 7 day unbonding period in order to unstake them.
After the unbonding period, another transaction will be required to fully unlock the tokens.

While Subsocial does not *need* staking, as it is secured by Polkadot, the implementation of Creator Staking will still positively benefit the network,
and transfer token share from those are not participating in network growth, to those that are.
by transferring token share from those are not participating in network growth, to those that are,
as well as aiding in network curation and incentiving high quality creators.



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7 changes: 5 additions & 2 deletions docs/basics/tokenomics/Token-distribution.md
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Expand Up @@ -27,9 +27,12 @@ The only way to use tokens from the treasury is to submit a treasury proposal th
## Inflation

In the future, token supply inflation will begin, and each block produced will mint more tokens as a reward for important participants of the network.
Initial inflation will be set at 7.5% annually, and can be changed later via on-chain governance.
Initial inflation will be set at 1.58% annually, and can be changed later via on-chain governance.
At the time of writing, 90% of inflation is allocated towards Creator Staking rewards, and 10% towards the treasury.
These values can be changed in the future via on-chain governance.

The parameters may be adjusted to reflect market conditions. We need to ensure that inflation doesn’t negatively impact the utility of existing tokens,
The parameters may be adjusted to reflect market conditions.
The network needs to ensure that inflation doesn’t negatively impact the utility of existing tokens,
but is sufficient to reward certain important participants, such as collators, for performing necessary functions.

Before inflation begins, a distribution split will be determined, to decide what percentage of inflation goes to collators, dapp stakers, etc.
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Binary file added static/img/staking.png
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